Finances are an integral part of our life, and many of the decisions we make on a daily, monthly and yearly basis either affect our finances directly, or revolve around the subject of finances. The way we understand and approach finances can have a huge impact on the decisions we make in many areas small and large, from food and lifestyle choices, to career and family matters.
The consequences of good or bad decisions compound by the day. When the dimension of time is factored in, the good gets better and the bad gets worse. Good investment plans can gather handsome compounding interest, while uncurbed bad spending habits might do the exact opposite with debt and bills.
Being financially literate also helps us in preparing for the future like family planning and retirement, though they might not feel as important at present. There might also be times when we are caught unaware by circumstance, for example not being covered by insurance for hefty hospital bills. Decisions like these have to be made way beforehand, so it pays (literally) to be well prepared.
If you feel your financial literacy needs improvement, here’s an infographic we made with some tips to get you started!